SKS Microfinance Ltd has failed to get any immediate relief from the Supreme Court in its petition against Andhra Pradesh Microfinance (Regulation of Money-lending) Act, 2010.
"The Supreme Court in its judgment delivered on Monday has directed SKS Microfinance to plead its case before the High Court only,’’ a senior official in the Department of Rural Development, Government of Andhra Pradesh, told Business Line here on Tuesday.
The Hyderabad-based SKS filed a petition in the apex court challenging the AP Act MFI Act which resulted in almost complete halt of SKS operations in the State.
"Our contention that the petition was not maintainable on simple procedural grounds as a case has also been pending in the AP High Court proved to be correct,’’ the official said.
HC told to decide by Dec
The Supreme Court, however, directed AP High Court to decide on the validity of AP Act before December 31, 2011.
The AP MFI Act came in the wake of uproar over harassment of clients by recovery agents of microfinance institutions (MFIs) and collection of high interest rates up to 60.5 per cent on micro loans to the poor.
SKS is among the big MFIs which faced huge loss in the State with over Rs 1,200 crore outstanding loans.
The SKS Microfinance scrip was trading at 274.50, up 3.65 or 1.35 per cent at 12.00 p.m. on Tuesday.